Treasury Yield Is Six Basis Points From Low Before GDP

Treasury yields were six basis points from a record low before a government report that economists said will show growth in U.S. gross domestic product slowed and inflation cooled.

Yields indicate investors are cutting bets on inflation as the expansion slows. The five-year, five-year forward break-even rate, a measure of expectations for prices that the Federal Reserve uses to guide monetary policy, fell to 2.39 percentage points on July 24, the least in four months and below the average of 2.75 for the past decade. Today’s GDP report may signal “danger” for the economy, said Tony Crescenzi at Pacific Investment Management Co., which runs the world’s biggest bond fund.